Unsecured Cards vs. Secured Cards: 5 Things You Need to Know

Unsecured Cards vs. Secured Cards: 5 Things You Need to Know

When you have bad credit, the last thing you want is another credit card.

Or is it?

A secured visa credit card can actually help you rebuild credit, let’s take a look at how this card differs from a regular, or unsecured, credit card.

Secured Card vs. Unsecured Card – What’s the Difference?

A secured credit card like the UNITY Visa Secured Card is a credit card that is funded by you. The amount you deposit for the card determines your limit.
On the other hand, an unsecured card does not require you to fund it. Your credit limit for these cards is based on factors like your credit score and credit history and is determined by your lender. If you continue to demonstrate good credit usage, your lender may decide to raise your credit limit.

Another big difference between the two is that secured cards are usually easier to get. They are known as second chance cards for a reason. An unsecured credit card, on the other hand, typically requires the applicant to have a decent credit score. To qualify for a card that comes with perks, you may need a good to excellent credit score.

Which Card is Best?

While both cards have their own merits, a secured card is the way to go if you have money management issues or are trying to rebuild credit.

Why?

There are three big reasons:

Using a secured card can help you live within your means and avoid falling deep into debt when trying to rebuild your credit.

It can strengthen your credit score by helping you use credit wisely, and it’s a great card to start off with when you’re first learning to use credit.

When you have bad credit, unsecured cards may carry high fees or come with high interest rates, and neither option is good for someone trying to rebuild credit.

Tips to Rebuild Credit with a Secured Visa Credit Card

To help strengthen credit with a secured card, it’s important to keep these things in mind:

Charge in small amounts. It’s easy to keep a low limit since you’re funding the card, but it’s also wise to charge only what you can afford and pay off the entire balance.

Keep your credit use low. If you do carry over a balance, keep the balance-to-limit ratio low.

Pay your bill on time, every time. Doing so shows good money and credit management and will help raise your credit score.

How to Open a Secured Credit Card

It comes with a fixed rate, access to our How to Rebuild Credit Program and reporting to the major credit bureaus, so you can see your efforts paying off when your credit score starts rising.

You may think avoiding another credit card is the best thing to do when you want to rebuild credit, but that’s not always the case. Consider opening a secured credit card. If you place limited funds on it, use it sparingly and pay it in full each month, this credit card can easily help you rebuild your credit.

OneUnited Bank

Our community’s dream is now a reality! OneUnited Bank is fulfilling the hundred year old civil rights dream by garnering the savings power of our communities and channeling it back into urban communities for economic development. With your support by simply opening an FDIC insured account with great rates, we will continue to accomplish this dream everyday!

Kobie Monroe

Harriet Johnson

Thank you for this information. I would like to take advantage of the offer to rebuild my credit, however if I apply for the secured card, what are my chances of receiving the card; since my credit score is low at this time?

Hi Harriet, we are excited to hear that you are interested in our UNITY Visa Secured Card. We would recommend that you check out the Secured Card Agreement for details about the card and agreement before applying: https://www.oneunited.com/disclosures/UNITY%20Visa%20Cardholder%20Agreement.pdf

Dain DillonDain DillonD

trier

So happy I found this bank as I was actually online looking into racism in the healthcare setting and a link came up about Black lives Matter . I am in the "baby Boomer" Generation so I have seen , heard and been around for a lot but i didn't know this bank existed until today. I'm moving in 3 weeks and will be coming back to this site to open a saving account. Thanks so much. MS. Trier

Casena Michael

Hi Casena, we are excited to hear that you are interested in the UNITY Visa Secured Card. A secured credit card looks and acts like any other credit card which requires a credit application. A secured credit card reports to the 3 major credit bureaus.

Patrick Atkins

Mr.Otis Smithson

Dear OneUnited Bank,I was totally unaware that you even existed until about an hour ago-and quite frankly,I feel somewhat bothered by that.You see,I have always advocated the importance of banking,building and buying black,yet I never heard of(according to you)the biggest black owned bank in the country!I'm 50 yrs.of age and am beside myself with this new founded information.I definitely would like to join.However,can you please send me more information on your services,interest rates,etc?I'm in the Baltimore,Marland area.My mailing address is Mr.Otis Smithson,P.O.Box 25648,Baltimore,Md.21224.My email address is:Osdiyn@gmail.com.I am trusting that this site is secure because I am really not comfortable with this online method of doing thingsHey,I'm old school....what can I say?Why don't you guys have locations here in the Maryland areas,particularly Baltimore?I work hard for my money and I'd like my money to work hard & smart for me!I also want to invest,as well as establish accounts for my children.please feel free to reach out to me.I look forward to hearing from you soon.Have a great evening.

Cordell Edwards

Hi Cordell, thank you for your inquiry. Here is where you can find out about our UNITY Visa Secured Card: https://www.oneunited.com/unity-visa/ We also post Secured Card blogs here that may be helpful as well: https://www.oneunited.com/blog/secured-credit-card-blog/

Coy Evans

I WAS interested in applying for a secured card, but when I called to ask if it was a hard pull or soft pull, the first representative didn't know what I meant and the second representative said legally they couldn't disclose that information to me (confused face). Is there anyone competent enough to answer simple questions at customer service? I'm really trying to "join the movement", but talking to your representatives just now is making it VERY hard for me to switch over.

Carolyn Aird

Dear OneUnitedBank,
Thank you for all you do in our community. Is it a good idea to own an secured credit card when your credit score is good, like in the 799 range, or does this hurt? Is this Boston Branch located near the Boston Back Bay area?Thank you,

Hi Carolyn, good question. The Unity Visa Secured Card is designed to help build or rebuild credit for those with no credit or those with challenged credit. Our low interest rate of 17.99% APR and our annual fee of $39 is better than most unsecured credit cards. Credit scores allow lenders to assess default risk and offer credit at a rate of interest that compensates them for the risk. Your decision to apply for our card should be based on your own needs. Please take a look at our preliminary disclosure and determine if the Unity Visa Secured Card is right for you: https://www.oneunited.com/core/content/plugins/oub-unity-visa/application-disclosures-content-iframe.php

MRS T CAMPBELL

IM HAPPY TO HEAR THAT WE HAVE OUR OWN BANK I REALLY HOPE THIS IS GREAT OPPORTUNITY FOR BLACK PEOPLE STAND TOGETHER KEEP MONEY FLOWING TO WHAT MATTERS IN OUR COMMUNITIES YOUNGER GENERATION NEED SEE THAT WE ARE ALL KINGS/QUEENS AND OUR MONEY MATTERS ESPECIALLY HOW WE SAVE SPEND INVEST IN US BUT STAY FOCUS ON PRIZE ABOVE................

Jay Billups

The Unity Visa Secured Card is designed to help build or rebuild credit for those with no credit or those with challenged credit. Our low interest rate of 17.99% APR and our annual fee of $39 is better than most unsecured credit cards. Credit scores allow lenders to assess default risk and offer credit at a rate of interest that compensates them for the risk. Your decision to apply for our card should be based on your own needs. Please take a look at our preliminary disclosure and determine if the Unity Visa Secured Card is right for you: https://www.oneunited.com/core/content/plugins/oub-unity-visa/application-disclosures-content-iframe.php

Ron Keith

Carolyn LeBlanc

Last year I contacted Swiss America for information on how to invest in precious metals--Gold and Silver. I was inquiring for someone else. They sent a packet of information, but I did not feel qualified to interpret the information that was sent and told the individual who asked me to inquire just that.With that said, can an individual invest precious metals with your bank? For someone who knows nothing about the Stock Market, investing in gold, silver, foreign currency,etc. and would like to learn, how would you advise them as to the protocol?I have already decided to open an account that will take One United because of your mission. When I heard the Owner's story about the officer who treated her with such disrespect is what convinced me that this bank was indeed Black owned as I had been searching for a "Black Own" bank, but up to now believed that the ones I have been investigated are truly Black owned. They have the face of bein Black owned, but really are not. Also, the various programs that you have begun to launch in the Black communities such as teaching Financial Literacy to our people is indeed one of the things we need in order to help change the mindset that so many of us have. Kudos to you One United Bank.

Perry Ruby

I have had a card now for quite some time and wish to raise my credit limit. I have called and searched your website, but nobody seems to know how to do this ???Also, why do you all HOLD Electronic Payments from Major Banks for 5 days, as well as payments made from your own bank?? I would definitely understand why you might place a HOLD on a personal check or even an unknown bank check but why the aforementioned?Thank you in advance.

Chris emanual

Hi, I took the time to read more about one United, and I am inspired to share with my friends & associates the good news!
I am a home owner with a fairly good credit score of 716, and looking to build excellent or A-1 credit, to do business in my community in new jersey; can you advise me on the fastest way to get excellent credit? and business loans?
I Thank you in advance respectfully!

Hi Chris. Have you checked out our How to Rebuild Credit Program on our website? You can find it here: https://www.oneunited.com/unity-visa/how-to-rebuild-credit-program/As far as business loans go, we currently do not provide loans that are not real estate secured.

patricia Thomas

I only found out about this about a week ago. I was so excited. I will be opening an acct with this bank very soon. This is what our community needs, I thank you for investing in our heritage. I will pass this information on to those that have no idea of this site. God blessings and favor for prosperity

Karen

Hi Karen. We offer a secured credit card to help rebuild credit because other institutions are promoting prepaid cards which charge high fees and do not rebuild credit. Our community was not being served so we stepped in to fill the gap. We do not have the economies of scale or size to offer an unsecured credit card at this time. Hope this is helpful.

Don Fowler

Dear OneUnited Bank,
Thank you for the in-depth information on your website and offering both secured and unsecured credit products (In addition to your other offerings). I like the message and information you provide about your products. More financial institutions should follow your lead. Hats off to all of you at One United Bank!

Brian

What builds credit faster, secured or unsecured? My wife put me on her acount as an authorized user, will my credit score increase at the same rate as hers or will there be a difference? Let's assume that the ratio is right, payments good and what not.

Hi Brian, great question. The UNITY Visa Secured card program is designed to help rebuild or build credit. You can check out the program here for the different action steps you can take to help rebuild or build credit: https://www.oneunited.com/unity-visa/how-to-rebuild-credit-program/

Keneia Simmons

I am unsure as to how this works actually. I thought it was a good idea but no one seems to be able to give me a accurate response. I got your card. A 250 balance. I paid my first bill infact paid more than what was due. do I have to apply more money to use the card?

Hi Keneia,Great question. All you have to do is use your card and pay your bill each month. By using the UNITY Visa Secured Card you can build or rebuild your credit. To find out more about the program you can check out this page on our website: https://www.oneunited.com/unity-visa/how-to-rebuild-credit-program/

Tristan Spencer

Thanks for reaching out Tristan. Our bank was started and to this day continues to be owned by Black people. Our CEO and Chairman, our President and COO, and the majority of our Board of Directors are black. We take great pride in being one of only 21 Black-owned banks in the nation. We hope these answers have been helpful, and you can also read about our management team here: https://www.oneunited.com/about-us/company-profile/management/. You can also read about our board of directors here: https://www.oneunited.com/about-us/company-profile/board-of-directors/.

Pete Coulter

Hi Pete, great question. Yes anyone can apply for the UNITY Visa Secured card. For this specific type of detail you would want to discuss it with out Customer Service team. You can contact them here: https://www.oneunited.com/customer-service/contact-us/